A question often asked of us during the current market downturn is: "Where are all the distressed business opportunities?" It is a good question because there are certainly very few businesses being marketed by brokers at present. Those firms that are up for sale are, in the main, smaller, less mature businesses which would always struggle in the challenging economic climate we find ourselves in. 

The distressed opportunities that qualified, experienced purchasers are looking for are quality businesses, which may be struggling to keep afloat solely because of the debt levels they were saddled with going into the recession. You may recall that, in those halcyon days, the big four (Australian) banks were fighting each other to lend money to business owners and purchasers all throughout the decade until the tap was turned off in spectacular fashion in early 2009. 

If you purchased a business, or borrowed for expansion in late 2007 or 2008, your business would almost certainly instantly break the covenants you agreed to when you took on the loan. Now - in most cases - there would be very little wrong with the business at all, but the owner would have to focus on how s/he can hold off their bank long enough to ride out the recession. His/her eye would not be focused on developing the business, but rather on creating any number of reports each week to satisfy the voracious bank.   Read More...

The sun has finally arrived in Auckland and there are probably about 8 effective weeks until things start to slow down for the Christmas break. A number of business owners start the annual thought on whether they can commit to another year ‘sitting in the same seat.’ But with all market advice pointing them towards riding it out, what options are there for an exit?  Read More...

Wow, what a difference a little sun makes, especially over the weekend! Everyone seems a little more positive today and I couldn't resist heading home to sit on my deck and knock a blog out on my new iPad. This was of course purely for experimental purposes, could I work away from the office without carting my laptop with me? So I put the phone on divert and sit here with iPad, iPhone and a cup of coffee.  Read More...

An interesting article in The NZ Herald by Susie Nordqvist on September 20th regarding the common house sales tactic of setting a higher price and negotiating down is back firing because the buying public is ignoring the listing:Common sales tactic backfires  Read More...

We are a couple of weeks away from the end of the first 6 months of the 2010-11 financial year and I wonder how business owners are feeling now compared to the 1^st of April. Most people we speak to seem to be more positive, despite the rainiest month or so I can ever remember. My golf clubs have been sitting unused in the back of the car for weeks. The feeling definitely has improved but no-one can really put their finger on anything concrete.  Read More...